2005 (1) TMI 46

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... J.- The Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred the following question of law for the opinion of this court under section 256(1) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax, Gujarat I, Ahmedabad. "Whether, the Appellate Tribunal is right in law and on facts in cancelling the penalty levied by the Assessing Officer under se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income-tax (Appeals), who cancelled the penalty vide his order dated August 7, 1987, basing his decision on the judgments of the Calcutta High Court in the case of CIT v. Brijlal Lohia and Mahabir Prosad Khemka [1980] 124 ITR 485 and the Madras High Court in the case of CIT v. Kadri Mills (Coimbatore) Ltd. [1977] 106 ITR 846. According to the Commissioner of Income-tax (Appeals), though the delay ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ayable by an assessee, a sum equal to 2 per cent. of the assessed tax for every month during which the default continued had to be adopted as the base. Therefore, the term "month" is required to be taken into consideration. However, the issue is no longer res integra. In the case of CIT v. Kadri Mills (Coimbatore) Ltd. [1977] 106 ITR 846, the Madras High Court has laid down, as the said term has n....